SELLING DIRECTLY to the public the cucumbers, sweet corn, broccoli and cabbage that he grows always seemed like a good idea to Randy Henderson.

He could control his own destiny and supply locally grown produce
to a large metropolitan area a few miles from his 400-acre Thistledown Farm on River Road just north of Eugene.

After 20 years, the roadside stand operation that also offers
tomatoes, herbs, apples, peaches, pumpkins and filberts, is running
strong.

Although he didn't know it when he started, Henderson's
business plan of marketing directly to the public has become one of the
few options left for many Willamette Valley farmers with medium- and
small-sized operations.

"You get a bunch of farmers together these days and the thing
most talked about is what are we going to grow to make a dollar,"
Henderson said. "We can grow anything here, there's just no
market."

The number of fruit and vegetable canners and freezers in the
Willamette Valley has dwindled for years in a string of plant closures
and bankruptcies, leaving few ways to ship produce to national markets.
That confounds farmers, who note that the valley soil is among the most
fertile in the world.

Meanwhile, the world grass seed market is saturated, and Oregon mint producers are feeling pricing pressure from cheaper mint oil
imported from China and India.

With these traditional outlets and options, a growing number of
area farmers are adopting Henderson's entrepreneurial business
model of selling products directly to the public.

And many are finding success in the broad range of opportunities
that fall under the label of direct-from-the-farm marketing.

"Farm direct is definitely something that is growing,"
said Garry Stephenson, a professor and extension agriculturist with
Oregon State University's small farm program.

"There is a very large market out there that can offer some
real possibilities for small farmers," Stephenson said.
"People like supporting local farms and spending money that stays
in their local economy."

Consumers are particularly keen these days to buy produce
that's fresh and local, rather than resort to canned or frozen
produce that is grown in other states or countries, experts said.

Roadside attractions

Some farmers, like Henderson, have done well operating roadside
stands at the farm. They've found that customers are willing to
make the drive for fresh produce and to connect with the grower.

Others have found they can support themselves and their families by
selling at thriving farmers markets in Eugene, Albany, Corvallis, Salem
and the Portland area.

Still others line up business with local restaurants and stores to
supply fresh in-season produce. An escalating number of farms are
adopting a cooperative system in which customers buy a subscription for
a portion of the season's produce. In such cases, customers
typically receive a large box of produce every week through the summer
and early fall.

Yet many farmers aren't sure how to break into a direct-sales
niche. To give farmers the sales and marketing skills they need, the
Oregon State University Extension Service and other agricultural
interests will sponsor a conference at Eugene's Valley River Inn on
March 1.

The workshops will include tips on sales skills, how to sell to
restaurants and institutions, and the business planning aspect of farm
direct marketing.

Organizers of the conference are hoping to attract farmers, farmers
market managers, food retailers, restaurateurs, community members and
food policy advocates.

Henderson said he always considered growing crops for the fruit and
vegetable packing companies as risky. Those packing companies sell their
frozen and canned products to national and international markets.

"I didn't like being under the thumb of the
processors," Henderson said.

"The problems they have had repeat themselves every few
years," he said. "There's been a long line of them that
have gone broke and taken people's money with them."

Agripac's demise

Global competition and processor consolidations have wreaked havoc
on produce farmers in Oregon and across the county.

The Agripac grower's cooperative went bankrupt in 1999.
Chiquita Processed Foods bought Agripac's operations in Oregon and
Washington, but then closed several processing plants, including
canneries in Eugene and Salem. Agripac and Chiquita were hurt by
declining consumer demand for canned and frozen produce, and by
consolidation in the retail grocery industry that left giant grocery
chains able to squeeze produce marketers for lower prices.

"I think this direct sales stuff is about the only thing left
for a lot of folks," Henderson said.

Nationwide, the direct market approach has been on the grow.
Between 1992 and 1997, the number of farms engaged in direct marketing
increased 8 percent, to 93,140 farms, according to the U.S. Department
of Agriculture. More recent data isn't available, because the next
Census of Agriculture, for the 1997 to 2002 period, isn't due out
until 2004.

But indications point to continued growth.

The number of farmers markets in the nation increased by 63 percent
between 1994 and 2000, according to the USDA. In Oregon, farmers markets
have almost doubled over the past decade, said Laura Barton, a trade
manager for the Oregon Department of Agriculture's development and
marketing division.

In 2001, there were 50 farmers markets in the state. Last year,
they totaled 67, Barton said.

The Lane County Farmer's Market has become so popular with
people seeking fresh, local produce that it has outgrown its long-time
home in downtown Eugene in the Park Blocks. Last year the market posted
sales of $1.4 million, said Noa O'Hare, manager of the market.

The market, which operates Tuesdays and Saturdays from April
through October, services about 160 producers and growers. The problem
is, there are only about 60 spots.

"We've grown to capacity," O'Hare said. "I
think that speaks to the popularity of the market and the community
support we have here."

Restaurant avenues

Aside from the farmers markets, roadside stands and U-pick
operations, there are farmers selling their products directly to stores
and restaurants. Barton said restaurants that buy local farm products
are increasingly advertising that fact to their customers.

"I think people really want to know where their food is coming
from," she said.

Greener Pastures Poultry in Noti has found a niche in directly
supplying restaurants from Eugene to Portland.

The cooperative venture among four local poultry producers grows
and processes pasture-raised chicken and turkeys.

Aaron Silverman, general manager of Greener Pastures, said the firm
has been successful because it listens to the restaurants it serves and
makes sure the quality and size of the birds meet the restaurants'
needs.

"Our customers have been very involved the the development of
our products and how they are packaged," Silverman said.

The business processed 7,000 birds in 2001 and 15,000 in 2002. This
year, Silverman estimates the firm will process about 20,000.

Silverman, who also raises about 10 acres of vegetables and herbs
for restaurants, said he's been able to avoid losses by carefully
monitoring customer needs and not overproducing.

"What we produce depends very much on what their needs are
going to be," he said.

Cooperative approach

A more recent innovation is the subscription farms that deliver
boxes of produce to customers throughout the growing season. The niche
is known as community supported agriculture, or CSA.

There are now 10 such farms in Lane County; Winter Green Farm in
Noti is the largest.

Co-owner Jack Gray said up until about 1991, Winter Green was a
member of an organic produce cooperative that sold primarily to
wholesalers. "But there was too much variability and vulnerability
in distant markets for a farm our size to compete," Gray said.

Gray said he and his partners eventually decided that the best way
to prosper would be to serve local markets.

"Philosophically, we like the CSA," Gray said.
"You're growing for people you get to know and those people
know you and where their food comes from," he said. "We need
them to be able to grow it and make a living, and they need the
food."

Winter Green grows about 40 different kinds of vegetables along
with strawberries and blueberries.

The farm sells a subscription for about $350 a season and delivers
boxes of produce each week to distribution points around the area from
June through October.

Gray said the growth - Winter Green now has about 275 customers -
has been steady but in recent years has hit a plateau. "We want to
increase that," he said.

Need for growth

Pretty much every farmer involved in direct marketing is seeking to
do the same thing.

The biggest obstacle, many agree, is educating the public that
fresh, local produce is available at multiple locations and then
convincing customers to support those outlets.

"If people don't start looking at their food on a local
level - that means buying local - agriculture is going to be in
trouble," Gray said. "It seems that everyone wants the farm
next door to be a beautiful open space, but they don't want to pay
for it."

Silverman said many consumers tend to focus on getting the lowest
price possible, rather than on getting good quality and knowing where
the food comes from.

"It helps when there is a regional awareness to the importance
of buying local," he said.

"It shifts the emphasis a little bit from being a
price-oriented market to more of a quality-oriented market,"
Silverman said. "Once you're looking at where it comes from,
you're looking above the price sheet."

Oregon farmers tend to be at a competitive disadvantage to
lower-cost producers in the Midwest and overseas who have lower land and
wage costs.

Gray, as a member of the Lane County Food Coalition, is
spearheading a project to survey local farms that sell direct and then
compile a "Buy Local" directory for consumers.

"I think if people realized the importance of buying locally,
more people would do it," he said. "But it's hard for
farmers to educate people."

Henderson said it's important to support local growers, if for
no other reason than to keep valuable farmland from falling to
developers.

"The biggest competitor farmers around here have is ignorance,
not each other," Henderson said.

FARM DIRECT MARKETING CONFERENCE

What: Conference will provide information on the methods and
benefits of selling farm produce directly to the public

Where: Valley River Inn, Eugene

When: March 1

For more information: Call (541) 766-6750 or go to
smallfarms.oregonstate.edu/

Related link: www.lanefood.org

- Oregon State University Extension Service

CAPTION(S):

Randy Henderson, owner of Thistledown Farms, moves filbert starts
in preparation for planting. He has been selling produce locally for 20
years. Henderson pinches buds on flowers at his farm north of Eugene.
FARM DIRECT MARKETING CONFERENCE What: Conference will provide
information on the methods and benefits of selling farm produce directly
to the public Where: Valley River Inn, Eugene When: March 1 For more
information: Call (541) 766-6750 or go to
http://smallfarms.oregonstate.edu/ Related link: www.lanefood.org -
Oregon State University Extension Service

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